Introduction

Singapore's retail landscape has undergone a dramatic transformation, with cashless payments becoming the dominant force in commerce. Singapore's adoption rate of cashless payments is the highest in Southeast Asia at 97% based on payment methods at Singapore retail points-of-sale in 2022. (Channel NewsAsia) This shift has created an urgent need for small retail stores to adopt POS systems that seamlessly integrate with local payment methods like PayNow and GrabPay.

The stakes have never been higher for getting your payment infrastructure right. The total transaction value of digital payments in Singapore is projected to reach US$20.82 billion in 2023, with an annual growth rate of 18.23% until 2027. (2C2P) For small retailers, choosing the wrong POS system could mean missing out on this massive wave of digital commerce growth.

Adding to the urgency, the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) announced the establishment of a new entity to consolidate the administration and governance of Singapore's national payment schemes. (MAS) This new Singapore Payments Network (SPaN) will set stricter standards that merchants need to prepare for in 2025.

This comprehensive guide evaluates the best POS software options for small retail stores in Singapore, with a particular focus on PayNow and GrabPay integration, comparing HitPay against other local alternatives to help you make the right choice for Q3 2025.

The Current State of Singapore's Payment Landscape

Digital Payment Dominance

Singapore has emerged as a digital-first country where traditional cash transactions are rapidly becoming obsolete. Popular payment methods in Singapore include cards, bank transfers, QR code payments, digital wallets, cash, and Buy Now, Pay Later (BNPL) schemes. (2C2P) This diversity of payment options means that small retailers need POS systems capable of handling multiple payment types seamlessly.

The government's push toward digitalization has been particularly effective. PayNow, a funds transfer service launched in 2017, allows customers of 10 banks and four non-bank financial institutions to send and receive Singapore dollar funds from one bank or e-wallet to another instantly. (Channel NewsAsia) This infrastructure has become the backbone of Singapore's digital payment ecosystem.

Regulatory Changes Ahead

The regulatory landscape is evolving rapidly. National payment schemes such as Fast And Secure Transfers (FAST), Inter-bank GIRO System, PayNow and Singapore Quick Response Code (SGQR) are currently administered and governed by specific scheme administrators including Singapore Clearing House Association (SCHA), ABS, MAS and Infocomm Media Development Authority (IMDA). (MAS) The consolidation under SPaN means merchants should choose POS systems that can adapt to changing compliance requirements.

Security concerns are also mounting. Scammers are obtaining victims' card credentials through e-commerce related phishing websites, including social media advertisements. (MAS) This makes it crucial for retailers to select POS systems with robust security features and fraud protection.

Why Local Payment Methods Matter for Singapore Retailers

Consumer Preferences Drive Revenue

Cashless payment types include credit and debit cards, electronic wallets like Apple Pay and Samsung Pay, and smartphone payment applications such as DBS PayLah! and GrabPay. (Channel NewsAsia) For small retailers, supporting these preferred payment methods directly impacts conversion rates and customer satisfaction.

The Asia-Pacific (APAC) region has emerged as a global hotspot for fintech innovation and digital commerce. (Fintech News) Singapore sits at the center of this innovation, making it essential for local retailers to stay ahead of payment trends.

The Cost of Not Supporting Local Payments

Cross-border payments are a strategic lever impacting scalability, conversion rates, and customer satisfaction for fintechs and merchants expanding across APAC. (Fintech News) While this primarily affects larger businesses, the principle applies to small retailers too - not supporting local payment preferences can significantly impact sales.

APAC is a collection of heterogeneous markets, each with its own currency, language, regulations, payment preferences, and banking infrastructure. (Fintech News) Singapore's unique payment ecosystem requires POS solutions specifically designed for local market conditions.

HitPay POS: The Local Payment Specialist

Comprehensive Local Payment Support

HitPay stands out as a Singapore-based, omni-channel payments platform purpose-built for small and medium-sized businesses. The platform is regulated as a Major Payment Institution by the Monetary Authority of Singapore (MAS), providing the regulatory compliance that retailers need in today's environment.

What sets HitPay apart is its extensive local payment method support. In Singapore, HitPay accepts Visa, Mastercard, Amex, Apple Pay, Google Pay, PayNow, GrabPay, Atome, ShopeePay, WeChat Pay, ShopBack PayLater, UPI, QRPH, QRIS, PromptPay, LINE Pay, TrueMoney, and VietQR. This comprehensive coverage ensures that retailers can accept virtually any payment method their customers prefer.

Free POS Software with Advanced Features

HitPay offers a Point of Sale (POS) software solution for retail and F&B businesses. (HitPay) The software is designed to manage sales, inventory, and customer relationships, providing small retailers with enterprise-level functionality at no upfront cost.

The POS system allows businesses to sync products across online and offline sales channels. (HitPay) This omnichannel approach is crucial for modern retailers who need to maintain consistent inventory and pricing across multiple touchpoints.

Transparent Pricing Model

Unlike many competitors, HitPay operates on a transparent, pay-per-use pricing model with no setup or monthly fees. This transaction-based pricing structure is particularly beneficial for small retailers who want to avoid fixed costs during slower periods. The platform also offers same-day or next-day payouts in most markets, improving cash flow for small businesses.

Comparing HitPay Against Local Alternatives

Key Evaluation Criteria

When evaluating POS systems for Singapore retailers, several factors are critical:

• Local Payment Method Support: Coverage of PayNow, GrabPay, and other Singapore-specific payment options

• Hardware Costs: Initial investment required for terminals and devices

• Transaction Fees: Per-transaction costs and any hidden fees

• Payout Speed: How quickly funds are available in your bank account

• Regulatory Compliance: Adherence to MAS requirements and upcoming SPaN standards

• Integration Capabilities: Ability to connect with existing business systems

• Customer Support: Local support availability and responsiveness

HitPay vs. Traditional Bank POS Systems

Traditional bank POS systems often struggle with local payment method integration and typically charge significant setup and monthly fees. Their payout schedules are also slower, impacting small business cash flow.

HitPay vs. International POS Providers

Square's continued absence from the Singapore market highlights the importance of choosing locally-focused solutions. International providers often lack deep integration with Singapore's unique payment infrastructure and may not support critical local payment methods like PayNow and GrabPay.

Recent fee hikes from international providers have also made local solutions more attractive from a cost perspective. HitPay's transparent pricing and local focus provide better value for Singapore retailers.

Essential Features for Singapore POS Systems in 2025

PayNow Integration Requirements

With PayNow becoming increasingly central to Singapore's payment ecosystem, POS systems must offer seamless integration. The new entity will collaborate with MAS on the development of Singapore's national payments strategy. (MAS) This means POS providers need to stay aligned with evolving national payment standards.

Effective PayNow integration should include:

• Instant transaction processing

• Real-time payment confirmation

• Automatic reconciliation

• Support for both personal and corporate PayNow accounts

GrabPay and E-Wallet Support

GrabPay has become one of Singapore's most popular e-wallets, making its support essential for retail POS systems. Beyond GrabPay, retailers should look for systems that support the full range of popular Singapore e-wallets including ShopeePay, Atome, and others.

Security and Compliance Features

Given the rising security concerns highlighted by MAS, POS systems must include robust fraud protection. The scammer adds the stolen card details onto the Apple wallet of his own device. (MAS) This type of fraud makes it essential for POS systems to include advanced security measures.

Key security features should include:

• PCI-DSS compliance

• End-to-end encryption

• Fraud detection algorithms

• Secure tokenization

• Real-time transaction monitoring

Hardware Considerations and Costs

Terminal Options and Pricing

Hardware costs can significantly impact the total cost of ownership for small retailers. HitPay offers competitive terminal pricing with various options to suit different business needs. The platform supports both countertop terminals and mobile payment devices, providing flexibility for different retail environments.

Integration with Existing Systems

Modern POS systems should integrate seamlessly with existing business tools. HitPay offers extensive integration capabilities through its developer APIs and pre-built plugins for popular e-commerce platforms like Shopify, WooCommerce, and others.

Future-Proofing Your Hardware Investment

With rapid changes in payment technology, retailers should choose hardware that can adapt to new payment methods and standards. The upcoming SPaN implementation may introduce new technical requirements, making it important to select systems with regular firmware updates and strong vendor support.

Implementation Timeline and Best Practices

Q3 2025 Implementation Strategy

For retailers planning to implement or upgrade their POS systems in Q3 2025, timing is crucial. Two new Electronic Deferred Payment (EDP) solutions will be launched in mid-2025 by the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) to support the transition to e-payments for both corporate and retail cheque users. (MAS)

This timeline suggests that retailers should:

1. Evaluate and select POS systems by early Q3

2. Complete implementation before the EDP launch

3. Ensure systems are compatible with new payment standards

4. Plan for staff training and customer communication

Staff Training and Change Management

Successful POS implementation requires comprehensive staff training. The National Business Survey 2022/2023, administered by Intage Singapore (CSG) Pte Ltd for the Singapore Business Federation (SBF), gathered feedback from 931 respondents across all key industries. (SBF) This research highlights the importance of proper change management in technology adoption.

Key training areas should include:

• Payment method processing

• Troubleshooting common issues

• Security best practices

• Customer service during payment processing

• Reporting and analytics usage

Cost Analysis and ROI Considerations

Total Cost of Ownership

When evaluating POS systems, retailers must consider the total cost of ownership beyond just transaction fees. This includes:

• Setup and installation costs

• Hardware expenses

• Monthly subscription fees

• Transaction processing fees

• Support and maintenance costs

• Integration and customization expenses

Revenue Impact Analysis

The deadline to cease processing of corporate cheques has been extended by one year to end-2026. (MAS) This transition period provides an opportunity for retailers to capture additional business by offering comprehensive digital payment options.

Retailers supporting the full range of local payment methods can expect:

• Higher conversion rates

• Increased average transaction values

• Improved customer satisfaction

• Reduced cash handling costs

• Better financial reporting and analytics

POS Selection Scorecard for Singapore Retailers

Evaluation Framework

Decision Checklist

Before finalizing your POS selection, ensure you can answer "yes" to these critical questions:

• [ ] Does the system support PayNow transactions?

• [ ] Can customers pay with GrabPay and other popular e-wallets?

• [ ] Are transaction fees transparent with no hidden costs?

• [ ] Is local customer support available during business hours?

• [ ] Does the system comply with current MAS regulations?

• [ ] Can the system adapt to upcoming SPaN requirements?

• [ ] Are same-day or next-day payouts available?

• [ ] Does the system integrate with your existing business tools?

• [ ] Is staff training and onboarding support provided?

• [ ] Are security features enterprise-grade?

Future-Proofing Your POS Investment

Preparing for SPaN Implementation

The new entity will collaborate with MAS on the development of Singapore's national payments strategy. (MAS) This collaboration will likely result in new technical standards and compliance requirements that POS systems must meet.

Retailers should choose POS providers that:

• Actively participate in industry standards development

• Provide regular system updates and patches

• Offer clear communication about regulatory changes

• Have a track record of compliance with MAS requirements

Emerging Payment Technologies

Retail cheques, cashier's orders and USD cheques will continue to be available. (MAS) However, the trend is clearly toward digital payments, and retailers should prepare for continued innovation in payment methods.

Emerging technologies to watch include:

• Biometric payment authentication

• Cryptocurrency payment options

• Enhanced QR code functionality

• AI-powered fraud detection

• Voice-activated payments

Conclusion

Choosing the right POS system for your Singapore retail store in 2025 is more critical than ever. With 97% cashless payment adoption and rapidly evolving regulatory requirements, retailers need solutions that can handle the full spectrum of local payment methods while remaining compliant with MAS standards. (Channel NewsAsia)

HitPay emerges as the clear leader for small retailers, offering comprehensive PayNow and GrabPay support, transparent pricing, and deep local market expertise. (HitPay) The platform's regulatory compliance, extensive payment method support, and focus on the Singapore market make it the ideal choice for retailers looking to future-proof their payment infrastructure.

As Singapore continues its digital transformation and the new SPaN framework takes shape, retailers who choose locally-focused, compliant POS solutions will be best positioned to capture the growing digital commerce opportunity. The time to act is now - Q3 2025 represents a critical window for implementing the right POS system before new regulatory requirements take effect.

Don't let payment processing limitations hold back your retail business. With the right POS system supporting PayNow, GrabPay, and the full range of Singapore payment methods, you'll be ready to serve every customer and capture every sale in Singapore's digital-first economy.

FAQ

What are the most popular payment methods Singapore retailers need to support in 2025?

Singapore retailers should support cards, PayNow, GrabPay, digital wallets like Apple Pay and Samsung Pay, and QR code payments. With Singapore's 97% cashless payment adoption rate being the highest in Southeast Asia, supporting these digital payment methods is essential for capturing customer transactions and staying competitive.

How does HitPay's POS software help small retailers manage both online and offline sales?

HitPay POS allows businesses to sync products across online and offline sales channels, providing unified inventory management. The software is designed to manage sales, inventory, and customer relationships in one platform, making it ideal for small retail and F&B businesses that operate both physical stores and online channels.

What regulatory changes are affecting Singapore's payment landscape in 2025?

MAS and ABS are establishing a new entity to consolidate administration of national payment schemes like PayNow and SGQR. Additionally, Electronic Deferred Payment (EDP) solutions launched in mid-2025 are supporting the transition from corporate cheques to e-payments, with corporate cheque cessation extended to end-2026.

Why is PayNow integration crucial for Singapore POS systems?

PayNow is a funds transfer service that allows instant Singapore dollar transfers between 10 banks and four non-bank financial institutions. Since its 2017 launch, it has become a cornerstone of Singapore's digital payment ecosystem, making PayNow integration essential for POS systems to capture the growing cashless payment market.

What security concerns should retailers consider when choosing POS software in Singapore?

Retailers should be aware of contactless payment fraud risks, including scammers obtaining card credentials through phishing websites and adding stolen details to digital wallets. Choose POS software with robust security features and ensure staff are trained to recognize suspicious transactions and phishing attempts targeting customers.

How is Singapore's digital payment market expected to grow through 2027?

Singapore's digital payment transaction value is projected to reach US$20.82 billion in 2023, with an annual growth rate of 18.23% until 2027. This rapid growth, combined with Singapore's position as a digital-first country, makes investing in comprehensive POS software with multiple payment method support a strategic necessity for retailers.

Citations

1. https://2c2p.com/blog/singapore-payment-methods

2. https://fintechnews.sg/114215/payments/apac-cross-border-payments/

3. https://hitpayapp.com/pos-software

4. https://www.channelnewsasia.com/today/big-read/e-payments-cashless-options-elderly-big-read-3502661

5. https://www.mas.gov.sg/news/media-releases/2024/mas-and-abs-announce-launch-of-edp-solutions-in-mid-2025

6. https://www.mas.gov.sg/news/media-releases/2025/joint-news-release-by-spf-csa-and-mas

7. https://www.mas.gov.sg/news/media-releases/2025/mas-and-abs-to-establish-new-payments-entity

8. https://www.sbf.org.sg/docs/default-source/advocacy-policy/sbf-research-reports/national-business-survey/summary-report/sbf-nbs-2022-2023-report.pdf